KGI Asia Commentary
HSI rose 34 points on Friday
The Hang Seng Index rose 34 points or 0.2% to 20,344 on Thursday. HSTECH fell 6 points or 0.2% to 4,159 and HSCEI rose 8 points or 0.1% to 6,875. Daily market turnover was HK$109.9bn.
U.S. stocks end higher on Thursday on expectations of muted rate hikes
The Dow ended higher on Thursday as big tech stocks led gains, PPI data showed further cooling in inflation and easing labor market tensions could encourage the Federal Reserve to slow rate hikes further. The Dow Jones Industrial Average rose 383 points, or 1.1%, the Nasdaq rose 2% and the S&P 500 rose 1.3%. Big technology stocks led the way with Alphabet, up more than 2 percent, and Apple, up more than 3 percent. The energy index ended slightly higher, but the market was under pressure due to concerns that the US economic recession will curb energy demand. On the earnings front, Delta Air Lines announced that its quarterly results were worse than expected, and the company's stock price fell slightly. Financials also led the broader market higher, as bank shares closed higher ahead of the quarterly earnings season, which begins on Friday.
Initial jobless claims rise more than expected
Weekly data released by the U.S. Department of Labor on Thursday showed initial jobless claims of 239,000 for the week ended April 8, above market expectations of 232,000 and above the unrevised 228,000 in the previous week. This is the highest level since Jan. 15, 2022. Meanwhile, continuing claims for unemployment benefits fell by 13,000 to 1.881 million for the week ended April 1.
U.S PPI saw dramatic cooldown in March
The Producer Price Index (PPI) released by the Bureau of Labor Statistics on Thursday showed that U.S. wholesale inflation continued to decline in March, with annualized price growth falling sharply to 2.7% from an upwardly revised 4.9%. That was the lowest annual level of the key inflation gauge since January 2021. On a monthly basis, producer prices fell 0.5% as commodity prices fell, particularly energy prices. Easing inflationary pressures underpin the possibility that the Federal Reserve may slow rate hikes further.
Hong Kong Stock Connect had a net inflow of HK$1.15bn on Thursday, of which China Mobile (857) had the largest net inflow, reaching HK$0.45bn; followed by Wuxi Bio (2269). Tracker Fund (2800) recorded the largest net outflow at HK$0.58bn, followed by Sense Time (20).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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